Researchers have found that people experience immediate pain when paying money, known as payment pain. This pain reduces the sense of joy that people derive from consumption. For example, when you travel to a beautiful country, you want to take a taxi to enjoy the beautiful scenery outside the window, but the taxis in this country are very expensive. You sit in the back seat and feel sorry for yourself every time you hear the timer tick. Money in your pocket for a second. In this way, you no longer have the mood to watch the scenery outside.
If you take a taxi and pay first, you won’t have this feeling. You’ve paid for it, you’re no longer thinking about the pain, and now it’s your job to get your money’s worth, so enjoy yourself.
But it’s different if you’re not buying an experience but a substance, like a washing machine. Because the washing machine can bring you benefits for a long time after you buy it, you will directly correspond the pain of paying for it with the benefits of using it, and feel that it is reasonable and worth the money.
In addition, when charging for experience, not only should pay attention to charging first, but also be careful not to charge too many times. For example, if you go to an old-fashioned amusement park and find out that each feature has a separate fee, you may not have as much fun. Every time you pay, you feel bad, so you won’t have a good time. This is why when Disney appeared, it changed the fee from the activity to the fee from the admission.
More and more merchants have adopted the combined payment method. For example, in the film industry, renting video tapes used to be charged based on the number of rentals, and there was no fine for overdue video tapes.
After the birth of Netflix (Netflix, an online video rental provider), the pricing model adopted was completely different. Consumers only need to pay a monthly fee to enjoy unlimited movie rentals.
Domestic video sites also imitate the payment method of Netflix. Of course, they also retain the option of charging each movie separately, that is, users can choose to pay for each movie they watch. But if you look at their fees, you will know that users need to pay 5 to 6 yuan to watch a single movie, but the monthly membership fee is only 19.8 yuan. Obviously they prefer users to become monthly members. Why is this?
Because they don’t want users to pay per view. If the user pays 5 yuan each time they watch a movie, the user will be fussy and feel that it is not worth it after watching a bad movie.
In addition, paying a membership fee can also increase user frequency and loyalty. After the user becomes a member, but has not watched it once, he will feel that he is at a loss, and he will try his best to spare time to watch it. Every time he watches a movie, he feels as if he has earned his money back. So why are restaurants mostly post-pay? If you look closely, there are also some restaurants that require payment up front, and these restaurants are generally cheap fast food restaurants. This is why?
It depends on whether the relationship the restaurant wants to establish with you is a functional relationship or an emotional relationship. If a restaurant is functional, then the restaurant doesn’t need to have an emotional relationship with you. You order and they ask you to pay. But high-end restaurants want to build a relationship with you, want you to be attached to them, to be a regular customer, and it would be too cold to ask you to pay after ordering.